Ibdar Bank (“Ibdar”), the Bahrain based wholesale Islamic investment bank, announced its financial results for the first half of the year ending 31 December, 2015 marked by improved performance and strong profitability.
For the six months ended 30 June 2015, the Bank reported total revenues of US$ 11.1 million, an increase of 51% above the prior-year period in 2014. Total profits for the period, also increased by 79% to US$2.54 million after considering an impairment charge of US$2.2 million relating to legacy assets.
Excluding these one-off charges, the Bank achieved significantly improved profitability of US$ 4.72 million compared to US$ 1.96 million in the first half of 2014. Ibdar has recognized a net loss of US$0.5 million for the three months period ended 30 June 2015, due to impairment allowances charged as compared to a net income of US$0.4 million for same period in 2014.
Strong revenues are attributed to increased income generated from investment banking services over the prior period supported by gains from trading of investments and securities and profitable exits from existing investments. Our sukuk portfolio continues to achieve strong returns. During the period, total asset base grew by 3% reaching US$438 million and the total owners’ equity was further strengthened.
Highlighting the improved performance for the period, Mr. Basel Al-Hag-Issa, CEO of Ibdar Bank, said,”Our results demonstrate a sound business strategy that focuses on diversification across asset classes, restructuring and exiting legacy assets, and the continuous development of the Bank’s human capital. We strive to establish a business model that can achieve stronger performance and thus enhance returns to our shareholders and clients.”
“During the first half of the year, we concluded several investments that we believe will enable us to strengthen returns and will position Ibdar as a major player in the Islamic investment industry. We continue to capitalize on our expertise in the aviation sector and have purchased and leased one Bombardier Q400 aircraft to RwandAir, as well as another purchase and lease back of three Bombardier Q400 aircrafts to Falcon Aviation Services of Abudhabi during this period. In addition, we have concluded a partnership to purchase a significant minority stake in a leading power contractor in Saudi Arabia.
Mr. Al-Hag-Issa concluded, “In addition to these, we have a strong pipeline of opportunities that we aim to conclude by year end. The real estate sector remains a focus for us with a particular emphasis on income generating assets in the UK, US and domestic markets.
We are very pleased with the performance and progress achieved to date and expect the trend to continue as we further leverage our ability to structure unique opportunities and create value for our clients and shareholders.”
Ibdar is active in financing and private equity in the GCC and MENA markets as well as real estate investments in the region and globally. The Bank has extensive experience in sectors including infrastructure, oil & gas, maritime, aviation and retail, among others.